Volcom Inc. (USA) reported a disappointing second quarter result and offered an outlook for the current one that fell short of what Wall Street had been expecting. Volcom reported a second-quarter profit of US$68,000, down from $872,000 a year earlier and well short of the $1.2 million analysts were expecting. Volcom says profitability was impacted by higher selling, general and administrative costs, which rose 15% from a year earlier to $29.7 million. Volcom also cites higher marketing expenses at stores that sell its products for the rise in costs. Volcom are offering retailers what they call "incentive pricing" as a bid to gain market share. Revenue came in at $62.5 million, up 15% from a year earlier and on par with Wall Street’s average expectation. For the third quarter, Volcom offered an outlook that fell short of what analysts had been expecting. The company said it projects a profit of $11.5 million to $12.5 million, below the $15 million analysts had been forecasting. Revenue is seen coming in at $102 million to $105 million, below the $106.8 million Wall Street had been expecting. The company also cited retailers remain "cautious" and production issues in China that stand to delay the shipment of winter clothes as additional contributing factors. Late last week Volcom Inc. announced the acquistion of its Australian licensee for a reported $8 million. Volcom Australia has estimated annual revenues of $20 million.